Evercore ISI analyst Steve Sakwa resumed coverage of Simon Property Group with an In Line rating and $89 price target. The analyst likes Simon over the long term given its "dominant status" in the retail space and "strong" liquidity position, but he prefers to wait for a entry point into the name.
Bearish flow noted in Simon Property with 3,370 puts trading, or 1.2x expected. Most active are Jan-21 80 puts and Jan-21 65 puts, with total volume in those strikes near 1,600 contracts. The Put/Call Ratio is 1.51, while ATM IV is up nearly 4 points on the day. Earnings are expected on February 4th.
JCPenney's (JCPNQ) new ownership group, consisting of Simon Property Group (SPG) and Brookfield Asset Management (BAM), along with strategic partner Authentic Brands Group, said they have launched a search for a Chief Executive Officer to replace Jill Soltau, who will be exiting the company effective December 31, 2020. "The search will seek to identify a leader that is focused on modern retail, the consumer experience, and the goal of creating a sustainable and enduring JCPenney," they announced in a statement. "JCPenney's new ownership group will establish a temporary office of the CEO to include key members of JCPenney's current leadership team," they added. Stanley Shashoua, Simon Property Group's Chief Investment Officer, will be appointed interim CEO effective January 1, 2021.
Simon Property Group (SPG) announced that it has completed its acquisition of an 80% ownership interest in The Taubman Realty Group Limited Partnership, or "TRG." Under the terms of the transaction, Simon, through its operating partnership, Simon Property Group, L.P., acquired all of Taubman Centers (TCO) common stock for $43.00 per share in cash, and the Taubman family sold approximately one-third of its ownership interest at the transaction price and remains a 20% partner in TRG. Total consideration for the acquisition, including the redemption of TCO's 6.5% Series J Cumulative Preferred Shares and its 6.25% Series K Cumulative Preferred Shares, was approximately $3.4B and was funded with existing liquidity, including proceeds from Simon's recently completed equity offering. David Simon, Chairman, CEO and President of Simon Property, said, "This investment will enhance the ability of TRG to establish innovative retail environments for consumers and to create new job prospects for the communities in which it operates. I look forward to partnering with the Taubmans in this exciting new joint venture, and to driving strong performance at TRG's properties."
Taubman Centers (TCO) announced that, at a special meeting of shareholders, its shareholders approved and adopted the previously announced amended and restated merger agreement among the company, The Taubman Realty Group Limited Partnership, Simon Property Group (SPG) and certain other parties, and the transactions contemplated by the merger agreement. Over 99.9% of the shares voted were in favor of the merger agreement and the transactions, which constitutes approximately 80.1% of the outstanding shares entitled to vote. Subject to customary closing conditions, the transactions are expected to close in late 2020 or early 2021.
Simon announced its collaboration with Mango and their expansion strategy in the United States with the opening of new stores in 2021 that will feature an assortment of Women's, Men's and Kid's collections. Mango and Simon are collaborating to open three stores in the first quarter at Roosevelt Field, Menlo Park Mall and Dadeland Mall. These centers were strategically selected in the United States to jumpstart the expansion of Mango's Mediterranean brand to the American consumer.
Truist analyst Ki Bin Kim raised the firm's price target on Simon Property to $94 from $72 and keeps a Hold rating on the shares. The analyst has updated earnings estimates across the REITs space based on NAREIT commentary, Q3 results and earnings conference call commentary from the group and recently announced events.
Commercial Real Estate Analysts, along with Tom Dobrowski, Vice Chairman of Newmark Knight Frank, discuss the current views and outlook on enclosed malls on an Analyst/Industry conference call to be held on December 3 at 1 pm.
Commercial Real Estate Analysts, along with Tom Dobrowski, Vice Chairman of Newmark Knight Frank, discuss the current views and outlook on enclosed malls on an Analyst/Industry conference call to be held on December 3 at 1 pm.